Moody's downgraded Slovakia’s sovereign rating by one notch to A3
Moody's downgraded Slovakia’s sovereign rating by one notch to A3. The worst rating since 2004 has a stable outlook. The other two major agencies, Fitch and S&P, have recently affirmed Slovakia's rating, seeing the government's consolidation efforts as credible. Moody's, though, points to rising public debt despite the consolidation package, and is concerned about the government’s crackdown on anti-corruption efforts and media as well as political instability, where coalition squabbles may make it difficult to push through further necessary measures.
The Finance Ministry says Moody's arguments are improper and one-sided; it used similar language to dismiss the European Commission's rule of law report that highlighted weakening of the country's checks and balances.
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